1. The Bioeconomy Initiative: A National Strategy for the Billion Ton Vision ATIP Foundation Regional Forum
Harry Baumes, Ph.D., Director
Office of the Chief Economist
September 16, 2016

2. Perspectives on the Growth of the U.S. Bioeconomy Background
Executive Order issued in August 1999, President Clinton launched a national Bioenergy Initiative, "a national partnership...to produce power, fuels and chemicals from crops, trees and wastes." The Executive Order established a goal: to "triple the U.S. use of biobased products and bioenergy by 2010.“
The Biomass Research and Development Act of 2000, later amended by Section 9001 of the Food Conservation and Energy Act of 2008 (FCEA) and most recently reauthorized in the Agricultural Act of 2014, established the Biomass Research and Development Board (BRD). The BRD is co-chaired by the USDA and DOE with 6 other agencies servicing on the BRD. The Biomass Research and Development Board (Board) coordinates research and development activities concerning biobased fuels, products, and power across federal agencies.

3. Bioeconomy Definition
The BIOECONOMY is defined as:
The global industrial transition of sustainably utilizing renewable aquatic and terrestrial biomass resources in energy, intermediate, and final products for economic, environmental, social, and national security benefits.
--From 2014 Report commissioned by USDA BioPreferred:
Why Biobased? Opportunities in the Emerging Bioeconomy
WHY BIOBASED ? Oppurtunities in the Emerging Bioeconomy”, July 2014
An Economic Impact Analysis of the U.S. Biobased Products Industry MAY 2015
This report examined and quantified the effect of the U.S. biobased products industry from an economics and jobs perspective. Specific findings are that in 2013 alone, America's biobased industry contributed four million jobs and $369 billion to our economy. The report findings include estimates that for each job in the biobased products industry a multiplier effect or an additional 1.64 jobs are generated in other sectors of the economy. In 2013, 1.5 million jobs directly supported the biobased product industry, resulting in 1.1 million indirect jobs in related industries, and another 1.4 million induced jobs produced from the purchase of goods and services generated by the direct and indirect jobs. Furth, the study reports that a minimum of 300 million gallons of petroleum is replaced annually due to the use of biobased products, which is the equivalent to taking 200,000 cars off the road each year.

4. Vision and Goal of the Billion Ton Bioeconomy
The vision for the Billion Ton Bioeconomy is to sustainably reach the full potential of biomass-derived products as a way of expanding our nation’s economy. In doing so, the bioeconomy will provide multiple economic, environmental, and social benefits to the Nation. The goal of the Billion Ton Bioeconomy is to develop and provide innovative ways to remove barriers to expanding the sustainable use of Nation’s abundant biomass resources for biofuels, bioproducts, and biopower, while maximizing economic, social, and environmental outcomes.

5. Need Biomass – Sustainably Produced
Baseline scenario
$60 dry ton-1
2012 & 2030
Baseline
High-yield

6. Billion Ton Studies History and Accomplishments
Billion-Ton Study (BTS), 2005
Technical assessment of agricultural and forestry systems to supply low-valued biomass for new markets
Identified adequate supply to displace 30% of petroleum consumption; i.e. physical availability
Billion-Ton Update (BT2), 2011
Quantified potential economic availability of feedstocks for 20-year projection
Publicly released county-level supply curves for 23 candidate biomass feedstocks through Bioenergy Knowledge Discovery Framework.
2016 Billion-Ton Report (BT16), 2016
Expansion of resource assessment to include additional feedstocks and delivered supply
Two-volume approach
The 2016 Billion Ton Report
Addressing biomass potential begins with answering the big question: Is there supply to justify R&D needed to displace 30% of transport fuels and attract major investment from private sector to commercialize conversion technology.
Yes, 2005 BTS was a technical assessment of a mid-century supply of 1 billion tons/year
2011 improved analysis to address economic availability of forest and ag biomass

7. Federal Alternative Jet Fuels Research and Development Strategy

8. Simplified Bioeconomy Concept
Revenue and economic growth
Broad spectrum of new jobs
Rural development
Advanced technologies and manufacturing
Reduced emissions and Environmental Sustainability
Export potential of technology and products
Positive societal changes
Investments and new infrastructure

9. Federal Activities Report on the Bioeconomy
In February, the Biomass R&D Board released the Federal Activities Report on the Bioeconomy (FARB).
This report aims to educate the public on the wide-ranging, federally funded activities that are helping to bolster the bioeconomy.
The vision for the Billion Ton Bioeconomy is to sustainably reach the full potential of biomass-derived products as a way of expanding our nation’s economy. In doing so, the
The goal of the Billion Ton Bioeconomy is to develop and provide innovative ways to remove barriers to expanding the sustainable use of Nation’s abundant biomass resources for biofuels, bioproducts, and biopower, while maximizing economic, social, and environmental outcomes.
bioeconomy will provide multiple economic,
environmental, and social benefits to the Nation.
The FARB details a vision for a Billion Ton Bioeconomy—tripling the size of today’s bioeconomy by 2030.
Achieving this vision would provide economic, environmental, and social benefits, including a considerable reduction in GHG emissions.

10. Overview of Agency Activities
Point out pseudo SUPPLY CHAIN
But more so the different color dots indicate the different types of work going on across organizations
Policy-data-analyses, R&D / S&T, workforce, ppp, integrated approaches
MARK SMITH: The ARS Administrator may focus on this slide as showing that USDA is already providing the science and technology for feedstock supply, biomass conversion, and bioenergy distribution.  It might make it difficult for you to then ask her to make bioenergy an initiative for FY 2018.  Also, USDA is not shown as conducting research (“provide the S&T”) for bioenergy end use.  That’s beyond our bailiwick, right?  “Understand and inform policy” related to biomass conversion.  USDA not shown as doing that—is that true?  Isn’t ERS doing something in that realm?

11. Bioeconomy Initiative Reports Plan
The Bioeconomy Initiative: Action Plan
Target completion date: Dec., 2016
Planned Release Fall 2016
Three reports in the series: FARB – released in February, 2016
Stakeholder engagement
Over 400 participants involved in 5 sessions.
4 in-person Listening Sessions were held in conjunction with major bioenergy industry events.
1 public webinar (May 5th).
This report will be the second part of a staggered release of the Initiative
An ‘Action Plan’ to follow
Listening Sessions:
Advanced Bioeconomy Leadership Conference in DC (2/29)
Focus on CEOs and entrepreneurs
International Biomass Conference & Expo in Charlotte (4/10)
Focus on feedstocks and logistics
BIO World Congress on Industrial Biotechnology in San Diego (4/17)
Focus on the industrial bioenergy sector
38th Symposium on Biotechnology for Fuels and Chemicals in Baltimore (4/27)
Focus on research and development
GoToWebinar hosted in DC (5/5)
Focus on broad audience
This report will be the second part of a staggered release of the Initiative based on recommendations and guidance from OSTP.
–      An ‘Action Plan’ will follow that will require OMB review.”

12. Report Outline Introduction The Bioeconomy Initiative
Purpose of the report
Background of the Bioeconomy Effort
The Bioeconomy Initiative
Path to building the Initiative
Overview of the Bioeconomy Vision as stated
in the FARB
Highlights and Learnings from the FARB
Expected benefits for 2030 as defined by Analysis IWG
Challenge Areas (as identified by Stakeholders)
Ongoing Interagency Areas of Importance and Growth for the Initiative
Next Steps/Path Forward
How to move from the Strategy Report to an Action/Implementation Plan
Additional Stakeholder Involvement
Call for partners from industry/research community to ‘Join the Initiative’
Conclusion
Linkage to the Food Energy water Nexus
The Bioeconomy Initiative: A National Strategy for the Billion Ton Vision is being written to address the following:
Identify barriers and opportunities to meeting the vision (initiative) goals
Strategic Buckets
Technoeconomic Barriers
Policy Barriers
Market Barriers
Financial Investment Barriers
Workforce Barriers
Crosscutting strategy buckets
Public awareness/acceptance
Realize full value of bioenergy compared to fossil fuels and biobased products/manufacturing – emphasize/note co-products value/benefits
Build a national coalition in support of expanding the bioeconomy
Better federal agency coordination
Collaboration from fundamental science through to market transformation
(including consumer acceptance – alternative jet fuel, BioPreferred for end use market development – demand pull)
Use of convening power of the Federal Government to bring partners together
The report will not include any new funding numbers or forward looking statements overcommitting the federal government to new activities (per OMB request)

13. Key Challenges Identified
This report discusses seven of the high-priority challenges recognized by the bioeconomy stakeholder community, identified below:
Major technical hurdles for development and scale.
Steep competition from traditional petroleum-derived resources.
A lack of necessary infrastructure.
Access to capital for large financial investments.
Uncertainties about sustainability—understanding environmental, social, and economic outcomes.
Growth instability and increased investment risk caused by policy uncertainty
The need for a strong and capable workforce.

14. Key Opportunities
Specific opportunities within each challenge as potential growth areas for the future of the Initiative are detailed below:
Develop feedstock and fundamental innovations that reduce cost and technology risk in the supply chain.
Seek opportunities to utilize low-cost waste resources.
Quantify, communicate, and enhance beneficial effects and minimize negative impacts.
Create increased public demand for biomass-derived products in a bioeconomy.

15. Key Opportunities Continued
Develop bioproducts that can accelerate biofuel production.
Enable the testing and approval of new biofuels and bioproducts.
Expand the market potential for biomass.
Encourage private-sector financing
Support stable, long-term policies.
Ensure a ready workforce to meet the needs of the bioeconomy

16. Purpose for this meeting:
This workshop series is intended to focus on regional issues and their specific bioeconomy-related industries through the various state partnerships.
The feedback gathered from these formal workshops will be used to solidify and support the Action Plan that is planned for release in December of 2016.

17. Infographic goes here. BILLION TON BIOECONOMY CREATES OPPORTUNITIES
Jobs
Heat and power generation
Biofuels (including jet)
Renewable Chemicals and Biobased Products
GHG emissions reductions (82 million cars)

18. Critical Discussion Points
What are state/local/regional challenges to the bioeconomy?
How can the federal agencies help address these regional challenges?
What are state/local/regional opportunities to the bioeconomy?
How can the federal agencies help leverage these regional opportunties?
What is the value proposition of a bioeconomy?
How can you contribute to the Billion Ton Bioeconomy?

19. Contacts Ashley Rose, support to the Board,
Harry S. Baumes, Director, Office of Energy Policy and New Uses
Todd Campbell, Energy Policy Advisor, Rural Development
Jonathan Male, Director, Bioenergy Technologies Office, DOE
Ashley Rose, support to the Board,
Looking Forward – pragmatically do not expect OMB to allow us to release such a document –
Set it up for something the next Administration might identify as deliverable in the “1st 100 days”
Assure have strong/stable foundation moving forward
Budget Ask …notes:  the budget ask:  Is there something specific you’d like ARS to do/support/rank in their table of budget priorities?  

20. Bioeconomy Initiative: A National Strategy for the Billion Ton Vision
THANK YOU!